Image compression scheme is divided into different operational phases for reliable, successful and efficient results. In this paper, Layered Scalable Concurrent Image Compression LSCIC pre coder is analyzed which is already proved scalable and stable with respect to data transmission and pixel loss. In the light of available compression schemes associated with vector quantization, codebook is developed using different optimized techniques like pair wise nearest neighbor algorithm, and other modified methods majority of them based on Linde Buzo Gray LBG algorithm. For the accomplishment of the objective, data blocks from LSCIC pre coder reach encoder which selects best code vector with respect to similarity with input vector. Best selection is obtained by the virtue of distortion measurement by utilizing Lloyd algorithm in conjunction with Vector Quantization method. Results are shown to achieve some novel observations when best codebook is selected.